Sphere Minerals (SPH)

Sphere Minerals’
spectacular run, during which its stock has more than doubled, could be coming to an end as Xstrata moves a step closer to taking control. Sphere has advanced 200 per cent this year thanks to a series of takeover proposals from Xstrata and Sing-Tang. Xstrata launched its bid for Sphere in August with an offer of $2.50 a share, at the time Sphere shares were trading at a little over $1.50. When Sing-Tang decided to launch a highly conditional bid of its own Xstrata was forced to increase its bid to $3 a share. The Sphere board rejected Sing-Tang’s proposal, citing the company’s poor track record in previous corporate deals. As of yesterday, Xstrata had acquired a 67.9 per cent stake in Sphere after fund managers Acorn Capital and Genesis Investments Management accepted the Xstrata offer. Sphere is a West African iron ore explorer with three projects in Mauritania, an Islamic republic.